bigred
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- Nov 25, 2001
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US Airways to End Pilots' Pension Plan
Thursday January 30, 5:12 pm ET
NEW YORK (Reuters) - Bankrupt US Airways Group Inc. said on Thursday it planned to terminate its pilots' retirement plan and replace it with a leaner pension program.
The airline notified the government that it intends to end the underfunded plan on March 31 and plans to start up another, committing $850 million over the next seven years in contributions to fund it.
US Airways said ending the plan was the only option remaining to resolve the pilots' underfunded pension liability before finalizing its bankruptcy reorganization plan for creditors. Proposed legislative and regulatory solutions have so far not materialized.
The government also has required the company to resolve the pension question one way or another in order to get final approval of a $900 million loan guarantee. That credit support is crucial to the company's reorganization effort.
Termination of the plan requires the approval of the government agency that insures pensions as well as the bankruptcy court.
Thursday January 30, 5:12 pm ET
NEW YORK (Reuters) - Bankrupt US Airways Group Inc. said on Thursday it planned to terminate its pilots' retirement plan and replace it with a leaner pension program.
The airline notified the government that it intends to end the underfunded plan on March 31 and plans to start up another, committing $850 million over the next seven years in contributions to fund it.
US Airways said ending the plan was the only option remaining to resolve the pilots' underfunded pension liability before finalizing its bankruptcy reorganization plan for creditors. Proposed legislative and regulatory solutions have so far not materialized.
The government also has required the company to resolve the pension question one way or another in order to get final approval of a $900 million loan guarantee. That credit support is crucial to the company's reorganization effort.
Termination of the plan requires the approval of the government agency that insures pensions as well as the bankruptcy court.
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